Hotchpot clause meaning

This glossary sets out numerous expressions frequently encountered in the restructuring arena. Words appearing in the definitions in bold are explained in other entries in this glossary. For further banking terminology, see the principal Banking & Finance Glossary. Restructuring glossary—A Acceleration: Acceleration means the agent, acting on directions from the majority lenders after an event of default, takes formal action, for example calling for early repayment of the facility. Ad-hoc committee: A temporary creditors’ group (often contrasted with a formal committee) that lacks any entitlement to official recognition. Administration: A process under the IA 1986 in which a financially distressed company is operated by an administrator as a going concern before longer-term outcomes, such as break-up and sale, are pursued. Administrator: An Insolvency Practitioner named by the court, a Qualifying floating charge holder, the directors or the company, to take control and fulfil one of the purposes in IA 1986, Sch B1. Administrative receivership: Arises when a company breaches the terms of...

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...

Including hotchpot provisions in Wills can help balance what beneficiaries receive, equalising benefits between beneficiaries. The hotchpot rule also applies on a partial intestacy where death occurred before 1 January 1996; see Partial intestacy below. The use and purpose of a hotchpot clause The testator should be advised about the potential use of a hotchpot clause in three particular situations, namely: where trust beneficiaries might obtain benefits via a power of appointment over the fund where advances have been, or are expected to be, made to beneficiaries during the testator’s lifetime by the testator where the testator forgives debts owed to them For the first situation, the Will may include a hotchpot provision requiring any class member receiving an appointment to bring that benefit into account, so that they credit that share before they can participate in any unappointed part of the fund. Where the testator has made, or anticipates making, lifetime advances to particular beneficiaries, they may wish...

Having already transferred money or property to several of my children absolutely I therefore require the children named below to collate into hotchpot, on the division of my Residuary Estate, the respective amounts specified, namely: [ name of child ] the sum of £[ sum ] [ name of child ] the sum of £[ sum ] [ name of child ] the sum of £[ sum ] [ I further stipulate that where any such child is granted, under this Will, a life interest only in a share of my Residuary Estate and, under the provisions of this Will, some other person or persons shall by substitution take the share in my Residuary Estate originally given to that child, the sum required to be brought into account by that child shall be brought into account both against that child and against all persons with an interest in that share. ]...